Thought Leadership What and How? Bridgestone gained thought leadership in the tire industry by pairing up with Ferrari on F1 - viewer brand recall jumped From less than 15% to over 75% in the first year By taking on Aston Martin in the early years, Enzo Ferrari established his company as a thought leader in high performance automotive technology
Thought Leadership in Solutions Management What Does it Mean? Software-as-a-Solution
<ul><ul><li>Create new markets while the competition plays catch up </li></ul></ul>
Chink in the Armor Why The Biggies Cannot Do It <ul><li>Sears, IBM, Digital, Xerox, Apple </li></ul><ul><ul><li>Market leaders, extremely well-managed companies, yet lost significant market share in the face of disruptive technical innovation </li></ul></ul><ul><li>Big companies are held captive by their customers </li></ul><ul><li>Their processes and products are optimized for the current market </li></ul><ul><ul><li>but it renders them incapable to adapting to upcoming and emerging markets and innovations </li></ul></ul>
Innovation is Not Born Equal <ul><li>Large companies are extremely good at incremental innovations – always improving what they are good at </li></ul><ul><li>Small companies like us are more suited for radical, disruptive innovation because we are not bound by our customers </li></ul><ul><li>Our large and varied customer base and breadth of exposure makes us extremely well suited for driving disruptive technical innovations </li></ul>
The Innovate-Commoditize-Innovate Cycle <ul><li>Innovation is seeded through Informal, unsanctioned POCs in the well-established companies </li></ul><ul><li>Marketing tests POCs with customers, realize the market is small and non-profitable </li></ul><ul><li>Management focuses on strengthening existing offerings for it’s larger, more important customers </li></ul><ul><li>Find a new niche through spin offs ready to sell to whoever wants to buy </li></ul><ul><li>New entrants move up-market into the customer base of its larger and bigger rivals </li></ul><ul><li>Bigger players race to defend its market </li></ul>
Five Principles Guiding Successful Innovation <ul><li>Customers guide resource allocation in well-run companies </li></ul><ul><li>Small markets are not interesting to large companies </li></ul><ul><li>Ultimate use of disruptive innovation is unknown – failure is critical step to success </li></ul><ul><li>An organizations strength is in its core values and processes – and this is also its biggest weakness in embracing disruptive change </li></ul><ul><li>The same attributes that make disruptive technology unattractive to established markets are its strengths in emerging ones </li></ul>
Harnessing the 5 Principles Channelizing the Organization for Innovation <ul><li>Embed disruptive projects with “special” customer needs to ensure resource allocation </li></ul><ul><li>Create small organizations and units to get them excited about the small wins </li></ul><ul><li>Prepare to fail often, minimize losses by failing early </li></ul><ul><li>Use the parent organization’s resources, but not the processes and values </li></ul><ul><li>Use disruptive technologies in new markets rather than using technology for gaining share in established markets </li></ul>
The Solutions Management Puzzle Step Owner Solution Identification Owner BU Head with approval of CEO & COO Solution Creation Solution (Product) Manager Solution Pilot Solution (Product) Design and Implementation Team – Innovation Unit Solution Delivery BU Project Teams (multiple) Solution Evolution and Sustenance Solution (Product) Design and Implementation Team – Maintenance Unit Solution Retirement Solution (Product) Design and Implementation Team – EOL Unit Solution Sales and Marketing Solution (Product) Sales and Marketing
Bringing it all Together Functions and Partners Actions and Impact HR Encourage rebels, non-conformists, reward innovation not just productivity Partners in the Ecosystem Our value network, find us new markets Technology Competency Centers Focus on applying disruptive technologies to solutions Sales and Marketing Incentivize to create new markets, not volumes Corporate Communication Focus on garnering exposure, even if controversial Training Train for innovation and experimentation. Also, train for product management Business Models and Organization Separate unit tasked with innovation and market creation, different yardsticks for success compared to parent organization Engineering Processes Institutionalize innovation and knowledge management, harness creativity and channelize it towards solutions
References <ul><li>The Innovator’s Dilemma, Clayton M. Christensen </li></ul>
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